Moody's Investors Service said it has downgraded to Baa2 from A1 the underlying rating on Walnut Township Local School District, Ohio's outstanding general obligation unlimited tax debt.
Moody's has also assigned a negative outlook. The bonds are secured by the district's authorization and pledge to levy a tax unlimited as to both rate and amount.
The Baa2 reflects the district's deteriorating financial position, an inability to implement a viable deficit reduction plan, and voters' recent rejection of an operating levy renewal. Additionally, the rating incorporates the district's weak election history, limited tax base, and high unfunded pension obligations.
